KD2005 to my home theater??

I am trying to connect some devices to my home theater. I have a KD2005 router to handle this. I have a bluray player, DirecTV box for OnDemand (HR-22) and a Nintendo Wii. I also am using a Linksys WRT300N v1.1. How I was planning on setting it up is from my cable modem to my WRT300N. From the WRT300N to the SD2005. From the SD2005 to my 3 devices for my mini home theater. I thought my plan was correct. When I hooked it up this way all the lights on my WRT300N start flashing quickly. I lost all internet connections through the WRT300N. The SD20005 was also flashing. No devices worked to reach the internet. When I unhooked the SD2005 my internet still did not work through the WRT300N. I had to unplug it and restart it to get the internet back.

So, am I wrong in thinking this is the way it needs to be set up? I thought I had some knowledge in doing this, but I am stumped.